The United States is filled with diverse and picturesque small towns that make ideal locations for vacation homes. From the tranquil beaches of the Gulf Coast to the rugged beauty of the Rocky Mountains, each town offers its unique charm and potential for investment.
Whether you’re looking for a serene getaway, a hub for outdoor adventures, or a place steeped in history and culture, these towns cater to a variety of preferences.
Many of these locations offer a strong potential for rental income, thanks to their popularity with tourists and their distinct local attractions.
In this guide, we explore the top 10 small towns in the U.S. to buy a vacation home, considering factors like average home prices, rental income potential, and unique local features.
These destinations are not only great for personal enjoyment but also offer promising returns on investment.
Whether you’re an experienced real estate investor or looking for your first vacation property, these towns are worth considering for their beauty, charm, and investment potential.
Best Small Towns to Buy a Vacation Home in the U.S.
Bar Harbor, Maine
Bar Harbor, Maine
Bar Harbor, a charming mariner town in Maine, is renowned for its splendid views of Frenchman Bay and its proximity to Acadia National Park.
This town is a haven for those who appreciate unique home architecture and natural beauty. In the winter, the town is covered in snow, offering a picturesque winter landscape.
Summers in Bar Harbor are lively, attracting travelers from all over to visit the national park and enjoy the serene Eagle Lake, Cadillac Mountain, and the harbor itself. The average home price in Bar Harbor is around $588,334.
Despite the high property prices, the investment in vacation homes here can be lucrative, with rental income potentially exceeding $6,000 per month. This makes Bar Harbor not just a scenic place to own a vacation home but also a financially promising investment.
Alpine, Texas
Alpine, Texas
Alpine, Texas, located just outside Big Bend National Park, is a hidden gem with its beautiful, mountainous backdrop and authentic small-town charm.
It’s one of the larger towns near Big Bend, making it a strategic location for vacation rentals. The average home price in Alpine is about $229,641, offering a more affordable entry into the vacation home market.
The rental potential in this region is considerable, with properties able to generate over $2,000 per month.
Alpine’s proximity to natural attractions, coupled with its scenic beauty and affordability, makes it an attractive option for those looking to invest in a vacation property.
Shasta Lake, California
Shasta Lake, California
Shasta Lake, a quaint town in northern California, is home to a large reservoir, Lake Shasta, a popular vacation destination.
Known for its houseboats, Shasta Lake allows vacationers to explore its 365 miles of shoreline while enjoying home-like comforts.
The town is also a hub for fishing, water skiing, and recreational boating, contributing to its appeal as a year-round vacation destination.
With an average home price of $289,514, Shasta Lake offers an affordable option for those seeking a vacation home in California.
The potential monthly revenue from vacation rentals can be around $2,520, making it a viable investment opportunity.
Gulf Shores, Alabama
Gulf Shores, Alabama
Gulf Shores in Alabama is a stunning waterfront destination offering 32 miles of beaches along the Gulf of Mexico.
It’s particularly popular among travelers from the Midwest, looking for a beach vacation experience. The town offers numerous amenities typical of a beach town, making it an attractive spot for vacationers. The average home price in Gulf Shores is around $444,535.
Despite this, the investment potential is high, with the possibility of earning nearly $4,500 per month from short-term rental properties.
This combination of beautiful location and solid investment opportunity makes Gulf Shores an excellent choice for purchasing a vacation home.
Grand Marais, Minnesota
Grand Marais, Minnesota
Grand Marais, Minnesota, is a serene lakefront town on Lake Superior, known for its vibrant local art scene, delightful restaurants, and a variety of outdoor activities like hiking and mountain biking.
This town is a magnet for visitors seeking tranquility as well as the majestic beauty of Lake Superior. The average home price in Grand Marais is under $350,000, making it a relatively affordable option.
The potential rental income, especially during the summer months, can reach almost $5,000 per month, presenting a profitable investment opportunity for those looking to buy a vacation home in a picturesque, peaceful location.
Planning a trip to California, don’t miss our checklist of things to do in Pacific Grove, and fun things to do in Atascadero.
West Yellowstone, Montana
West Yellowstone, Montana
West Yellowstone, located in Montana, borders the famous Yellowstone National Park. It’s one of the most popular destinations for summer travelers, with over 3 million people visiting the park each year.
West Yellowstone offers a unique glimpse of the park and access to the Yellowstone River, enhancing its appeal as a vacation spot.
The average home price in this small town is around $531,188, and the rental potential is nearly $4,500 per month.
This makes West Yellowstone not just an attractive vacation destination but also a valuable investment location for those interested in the tourism and vacation rental market.
Pensacola, Florida
Pensacola, Florida
Pensacola, situated in the Florida panhandle, is a popular vacation destination known for its reasonable housing prices and high-demand rental market for vacation properties.
With its rich military history and attractions like the Blue Angels and naval museums, Pensacola offers a blend of historical and modern experiences.
The average home price in Pensacola is around $247,364, and short-term rentals can bring in over $3,000 per month on average.
This combination of affordability and rental potential makes Pensacola an appealing option for those looking to invest in a vacation home.
Estes Park, Colorado
Estes Park, Colorado
Estes Park, Colorado, serves as the gateway to the Rocky Mountain National Park, offering a plethora of activities like hiking, biking, skiing, and rock climbing.
For horror enthusiasts, a notable attraction is the Stanley Hotel, which inspired Stephen King’s “The Shining.” The town’s population is around 5,862, and the median house price stands at a premium $700,000.
Estes Park’s unique blend of natural beauty and cultural significance makes it an ideal vacation home location for those who appreciate outdoor adventures as well as literary history.
The town’s proximity to the national park ensures a steady flow of tourists year-round, which can be beneficial for rental income.
Investing in a vacation home here means not only enjoying personal retreats amidst stunning landscapes but also potentially reaping financial benefits from the town’s popularity among tourists.
The Berkshires Region, Massachusetts
The Berkshires Region, Massachusetts
The Berkshires in Massachusetts is a region offering a serene escape, with its lush green forests, blue skies, and a backdrop of mountains.
The population of the Berkshires is approximately 127,859, and the median house price is around $384,950. This area is perfect for those seeking a peaceful retreat, offering activities such as hiking and enjoying fresh local cuisine from neighboring farms.
The Berkshires also boast a vibrant performing arts scene and opportunities for antiquing. The region’s weather patterns are typical of the Northeast, requiring jackets depending on the season.
For vacation home buyers, the Berkshires offer a blend of natural tranquility and cultural richness, making it an attractive investment for those seeking a getaway that offers both relaxation and engagement with local arts and cuisine.
Sierra Vista, Arizona
Sierra Vista, Arizona
Sierra Vista, Arizona, known for its stunning “Mountain View,” presents picturesque scenery and is an ideal location for stargazing and bird watching.
The town, with a population of 45,439, has a median house price of about $280,000. Sierra Vista’s location near several observatories, including one on the University of Arizona South campus, offers numerous public viewing opportunities.
The town’s elevation and climate make it cooler than Phoenix, adding to its appeal as a vacation destination.
Investing in a vacation home in Sierra Vista is not just about owning property; it’s about immersing oneself in a community rich in natural beauty and scientific exploration.
The town’s unique combination of astronomical and ecological attractions makes it an interesting choice for those looking to purchase a vacation home in a less traditional but equally captivating destination.
Have more time in Texas? check out our list of things to do in Cedar Park, things to do in Burnet, and things to do in Brownwood for a memorable vacation.
Final Thoughts
The United States offers a diverse range of small towns that are ideal for purchasing a vacation home. Each town, with its unique characteristics and attractions, presents an opportunity for both personal enjoyment and potential financial return.
Whether it’s the coastal charm of Gulf Shores, Alabama, the historic allure of St. Augustine, Florida, or the natural beauty of Estes Park, Colorado, these destinations provide a blend of leisure and investment opportunities.
For those considering a vacation home, these towns represent some of the best options in the U.S., offering a mix of scenic beauty, cultural richness, and a strong vacation rental market.